Mr. John Smith

XYZ, Inc.

New York, New York

 

 

Re: Letter of Intent for Purchase of Computer Equipment

 

 

Dear Mr. Smith:

 

            National Bank ("National") intends to purchase certain computer hardware from XYZ, Inc. The purpose of this Letter of Intent is to summarize our discussions to date and to confirm our respective intentions with respect to the proposed transaction.

 

1.     National intends to purchase from XYZ the Model 100 computer.

 

            2. The purchase price for the Model 100 shall be the lower of $________ or whatever better price XYZ is able to extend to National.

 

            3. National and XYZ will use their best efforts to conclude a contract on or before January 1, 201X.

 

            4. In order to secure timely delivery of the Model 100 National has paid to XYZ the sum of 10% purchase price as a deposit, which shall be promptly refunded in the event negotiations are terminated.

 

5. In the event that a contract is not signed on or before February 15, 1987 for any reason whatsoever, National or XYZ shall each have the right to terminate the negotiations without liability.

 

            This document is a Letter of Intent only. It is not intended to be, and shall not constitute in any way, a binding or legal agreement, or impose any legal obligation or duty on either of us.

 

            If the foregoing reflects our mutual statement of intention, please sign and return the enclosed copy of this Letter of Intent.

 

                                    Sincerely,

 

                                    National Bank

 

                                    By:__________________________

 

                                    Title:_______________________

 

                                    Date:________________________

 

 

Agreed:

XYZ, Inc.

 

By:___________________________

 

Title:________________________

 

Date:_________________________